A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is a form of short-term borrowing, mainly in government securities.

What does repo mean in cars?

Repossessed vehicles, also known as repo cars, are those lenders have taken back from the registered owners. When car owners fail to make their payments on a vehicle, the lender hires a repossession company to reclaim it, sometimes without the owner's knowledge.

What is repo short for?

A repurchase agreement (repo) is a short-term secured loan: one party sells securities to another and agrees to repurchase those securities later at a higher price. The securities serve as collateral.